LSB Financial Corp. Announces Year-end and Fourth Quarter Results

PR Newswire

LAFAYETTE, Ind., March 7, 2014 /PRNewswire/ -- LSB Financial Corp. (LSBI), the parent company of Lafayette Savings Bank, FSB, today reported net income for 2013 of $2.5 million or $1.62 per share, compared to net income of $2.7 million or $1.70 per share for 2012.  For the fourth quarter, net income was $518,000 or $0.33 per share in 2013 compared to $676,000 or $0.43 per share for the same period in 2012.  The decrease in income in 2013 was primarily due to a $1.1 million or 8.7% decrease in net interest income and a $1.2 million or 46% decrease in gain on sale of loans.  This was partially offset by a $1.5 million decrease in the provision for loan losses resulting from the continued improvement in asset quality.

LSB President and CEO, Randolph F. Williams, stated, "We continued to focus on improving credit quality during the year.  A major improvement was the 61% decrease in non-performing assets from $6.7 million at December 31, 2012 to $2.6 million at December 31, 2013, which resulted in a ratio of non-performing assets to total assets of 0.70% at December 31, 2013 compared to 1.84% in 2012.  At December 31, 2013, our allowance for loan losses was $6.3 million or 2.4 times the level of non-performing loans.  We believe our improved credit quality positions us well to compete as the economy recovers."

Mr. Williams continued, "The core profitability of the bank remains strong.  Our net interest margin ended the year at 3.36%, down from 3.87% at the end of 2012.  As a community bank we generate our earnings primarily by gathering deposits and making loans so this is an important number for us. The net interest margins we are seeing now are back in the range we were accustomed to before the recession.  Our 81% loan-to-deposit ratio is further evidence that we consider ourselves first and foremost a community bank.  Our balance sheet shows our success in attracting and maintaining local deposits.  Our core deposits increased by $17.4 million in 2013 while we repaid $5.0 million of FHLB advances. We continue to deleverage, reducing loans by $26.3 million which, along with our strong earnings, was a factor in increasing our capital ratio from 10.7% to 11.1% at the end of 2013."

For the third consecutive year we are proud to have been named to the Indianapolis Business Journal's top 25 performing Indiana stocks.

The closing price of LSB stock on March 6, 2014 was $28.76 per share as reported by the Nasdaq Global Market.


 

LSB FINANCIAL CORP.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands except share and per share amounts)

 

Selected balance sheet data:

December 31, 2013

December 31, 2012




Cash and due from banks

$21,961

$25,643

Short-term investments

2,237

5,778

Interest bearing time deposits

1,743

1,740

Securities available-for-sale

62,705

28,004

Loans held for sale

657

1,363

Net portfolio loans

254,703

280,257

Allowance for loan losses

6,348

5,900

Premises and equipment, net

7,933

7,069

Federal Home Loan Bank stock, at cost

3,185

3,185

Bank-owned life insurance

6,745

6,595

Other assets

5,712

4,976

Total assets

367,581

364,610




Deposits

314,620

308,637

Federal Home Loan Bank advances

10,000

15,000

Other liabilities

2,234

2,018

Total liabilities

326,854

325,655




Stockholders' equity

40,727

38,955

Book value per share

$26.03

$25.04

Equity / assets

11.08%

10.68%

Total shares outstanding

1,564,838

1,555,972




Deposit data:



  Core deposits

185,106

167,704

  Time deposits

129,514

140,933

  Wholesale deposits (included in Time deposits)

13,690

13,690

  FHLB Advances

10,000

15,000




Asset quality data:



Non-accruing loans

$ 2,572

$ 6,443

Loans past due 90 days still on accrual

---

---

Other real estate / assets owned

18

256

Total non-performing assets

2,590

6,699

Non-performing assets / total assets

0.70%

1.84%

Allowance for loan losses / non-performing loans

246.81%

91.56%

Allowance for loan losses / non-performing assets

245.13%

88.06%

Allowance for loan losses / total loans

2.43%

2.06%

Loans charged off

$  517

$1,710

Recoveries on loans previously charged off

315

179


Three months ended December 31,

Year ended December 31,

 

Selected operating data:

 

2013

 

2012

 

2013

 

2012

 

Total interest income

 

$3,278

 

$3,675

 

$13,771

 

$15,720

 

Total interest expense

 

545

 

695

 

2,363

 

3,225

 

 Net interest income

 

2,733

 

2,980

 

11,408

 

12,495

 

Provision for loan losses

 

---

 

500

 

650

 

2,100

 

  Net interest income after provision

 

2,733

 

2,480

 

10,758

 

10,395

 

Non-interest income:





 

Deposit account service charges

 

312

 

353

 

1,204

 

1,338

 

Gain on sale of mortgage loans

 

130

 

887

 

1,337

 

2,489

 

Gain(loss) on sale OREO

 

(51)

 

18

 

(53)

 

(97)

 

Other non-interest income

 

313

 

244

 

1,403

 

1,036

 

  Total non-interest income

 

704

 

1,502

 

3,891

 

4,766

 

Non-interest expense:





 

Salaries and benefits

 

1,348

 

1,598

 

5,833

 

6,205

 

Occupancy and equipment, net

 

358

 

305

 

1,326

 

1,208

 

Computer service

 

153

 

150

 

606

 

618

 

Advertising

 

132

 

128

 

437

 

377

FDIC Insurance Premium

115

120

476

481

 

Other

 

516

 

616

 

1,977

 

2,081

 

  Total non-interest expense

 

2,622

 

2,917

 

10,655

 

10,970

 

Income before income taxes

 

816

 

1,065

 

3,994

 

4,191

 

Income tax expense

 

298

 

389

 

1,456

 

1,532

 

  Net income

 

518

 

676

 

2,538

 

2,659






 

Weighted average number of diluted shares

 

1,575,572

 

1,562,365

 

1,565,597

 

1,561,495

 

Diluted earnings per share

 

$0.33

 

$0.43

 

$1.62

 

$1.70






 

Return on average equity

 

5.11%

 

7.01%

 

6.37%

 

7.07%

 

Return on average assets

 

0.58%

 

0.75%

 

0.70%

 

0.73%

 

Average earning assets

 

$337,185

 

$320,812

 

$339,607

 

$322,977

 

Net interest margin

 

3.24%

 

3.72%

 

3.36%

 

3.87%

 

Efficiency ratio

 

84.67%

 

73.10%

 

72.74%

 

72.32%








 

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